EIB signs cooperation agreements with Central American Bank for Economic Integration (CABEI) and COFIDES to facilitate investment in Latin America
The European Investment Bank (EIB) has taken another step towards strengthening its collaboration with financial institutions that operate in Latin America and the Caribbean. The EU bank, which participated in the 2018 annual meeting held by the Inter-American Development Bank (IDB) in Argentina, signed a Memorandum of Understanding with the Central American Bank for Economic Integration (CABEI) to establish a new partnership framework for strengthening cooperation between the two institutions. The aim of this agreement is to work together to finance projects that support the development of economic and social infrastructure in Central America and the Caribbean, with particular emphasis on providing funds for climate action.
The EIB also concluded a cooperation and co-financing agreement with COFIDES (Compañía Española de Financiación del Desarrollo) to underpin the co-financing of investment projects outside of the European Union, in particular through the EU’s blending instruments for supporting investment outside Europe.
At the signing ceremony, EIB Director for Operations in Latin America María Shaw-Barragán emphasised, “the importance of these agreements for generating more investment opportunities. Through these new cooperation mechanisms, the EIB can draw on the valuable experience and know-how of these institutions, which are already operating in Latin America and the Caribbean, to mobilise the necessary financial resources to ensure the development of new projects.”
The EIB in Latin America
The European Union is the main partner for the development of the Latin America region, its number one investor and second biggest trade partner. The EIB, as the EU bank, provides economic support for projects in Latin America by facilitating long-term investment with favourable conditions and by providing the technical support needed to ensure that these projects deliver positive social, economic and environmental results.
Since the EIB began operating in Latin America in 1993, it has provided total financing of EUR 7.8bn to support 105 projects in 14 countries in the region. Specifically, since 1993 the EU bank has made available over EUR 2bn to finance 35 projects in Central America. It started its operations in the Caribbean in 1978 and since then it has granted EUR 1.8bn to support various projects in the region.
In 2017, the EU bank provided EUR 759m in Latin America and the Caribbean, funds that facilitated the development of 12 projects in Bolivia, Nicaragua, Paraguay, Mexico, Argentina, Panama and Peru, in sectors as diverse as energy, transport, water infrastructure, climate action and assistance for small and medium-sized enterprises.